FSA 'reviewing EU's bank bonus rules'

The Financial Services Authority is reportedly exploring whether the UK can sidestep new EU legislation on bank bonuses.

Lawyers at the FSA may seek exemption from the rules on the grounds that the code of practice it laid out in August 2009 is already strict enough, the Daily Telegraph said.

"We are considering the text and how it affects our own code," an FSA spokesman said.

A majority of 625-28 EU lawmakers backed tough new rules to limit the size of bonuses awarded to certain employees in the financial sector.

The legislation allows no more than 30 percent of a total upfront bonus to be paid in cash and only 20 percent of large bonuses. At least half of a bonus must be paid in funds that can be used when a bank is in trouble, known as contingent capital.

The directors of part-nationalised banks would be subject to different regulations, the paper said. Hedge fund bosses are yet to learn if they will be exempt.